Unleashing India's Tourism Potential: Turning Visitor Numbers Into Economic Growth

India's tourism sector requires an ecosystem-wide approach for potential realization. Strengthening MSMEs, improving infrastructure, and attracting high-spending international travelers are key steps in boosting incomes. The sector's significant scale has not translated into economic value, remaining below the global average in GDP contribution.

India's tourism sector needs a comprehensive strategy to unlock its full economic potential, according to a Crisil Intelligence report released Tuesday. A focus on enhancing the capabilities of micro, small, and medium enterprises (MSMEs), alongside improved infrastructure, is crucial to converting the country's high visitor numbers into substantial economic gains.

The report, titled 'Tourism for Livelihoods: Building Circuits of Growth in India,' highlights that despite employing over 13% of the workforce, the tourism industry's contribution to GDP is only around 5%, significantly lagging behind the global average of 10%. The tourism sector can boost its economic impact by enticing high-spending leisure travelers and retaining domestic travelers who currently spend heavily abroad.

Proposed initiatives include developing flagship destination hubs and improving safety, hygiene, and infrastructure through public-private partnerships. Further recommendations emphasize integrating MSMEs, enhancing skill development, and promoting India as a global tourist destination with competitive offerings. Such targeted interventions aim to create resilient, high-value income streams for millions across rural and urban India.

(With inputs from agencies.)